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Navigating the Complexities of the Corporate Bond Market
This chapter explores the intricacies of the $8 trillion US corporate bond market, contrasting it with stock trading methods and emphasizing the challenges of trading different bond types. Insights from Chris White, a former Goldman Sachs executive, shed light on the modernization efforts in the bond market, from physical trading to algorithmic interactions. The discussion delves into liquidity concerns, debunking the idea that technology alone can ensure ample liquidity and proposing solutions like holding extra cash to prevent potential crises.